Patronus WIKI
  • Brief Introduction
    • Vision and Mission
    • Stick to DeFi Security
    • Build DeFi Lego
    • Community Links
  • Technical Framework
    • Lending System
    • Solution Concept
  • Financial Model
    • Asset Rating
    • Interest Model
    • Interest Compounding
    • Reserves and Service Charge
    • System Risk
  • Position Management
    • Collateral and Debt
    • Borrowing Capacity
    • Liquidation System
    • Sub-account
  • Risk Control System
    • Oracle
    • Financial Security
    • Smart Contract Security
    • Audit
  • Tokenomics
    • TGE and others
  • Community Governance
    • Roadmap
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  1. Financial Model

Interest Compounding

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Last updated 2 years ago

Instead of the traditional way of compounding by the block, Patronus distributes interest by the second.

On most lending platforms, the interest rates that users see on their website pages can never be met based on the premise that the contract is triggered by a transaction in order to settle the interest.

Patronus converts deposit APY and borrowing APY into interest rate per second and adopts continuous compound interest calculation to ensure the perfect match between actual interest and borrowing period.

Under this interest calculation method, the account update no longer depends on the trigger of the smart contract, and the accrued interest is no longer affected by other factors, ensuring the timeliness and predictability of the interest rate model.